NSE IPO subscribed nearly 1.5x so far on Day 3; GMP declines to 3% — should you apply?

As per the latest business developments, The initial public offering (IPO) of the National Stock Exchange of India (NSE) remained in demand on the last day of bidding, with the offering receiving 1.46 times subscription as of 10:25 am on September 21, as per NSE data.

The Rs 22,569-crore IPO received bids for 12,89,85,128 crore shares against 8,86,42,911 crore shares on offer. The demand was led by non-institutional market participants with 2.31 times subscription, followed by qualified institutional buyers with 1.83 times subscription. The retail market participants' portion was subscribed 87 percent.

In the grey market, the shares are witnessing a slide in GMP, with the latest premium indicating a potential stock-exchange debut gain of around 3 percent on the morning of September 21, according to InvestorGain.

Read Additionally: Jindal Supreme IPO allotment today: GMP at 31% — check status on BSE, NSE and registrar

Market participants must note that the GMP is not an official market indicator and does not guarantee the stock-exchange debut price or returns. It should not be considered a measure of the firm's financial performance or fundamentals.

The firm, on September 16, boosted Rs 6,746.2 crore from several marquee domestic and global market participants, with the Life Insurance Corporation of India (LIC) emerging as the largest player.

NSE, which is seeking a valuation of Rs 4.42 lakh crore, has allocated 3.77 crore equity shares to 189 anchor market participants at the upper end of the price range. The valuation sought by the exchange will likely see it enter the list of top 15 firms in terms of market capitalisation.

The public subscription will run from September 17 to September 21, consisting entirely of an offer-for-sale of 12.64 crore equity shares by existing shareholders. The price range for the offer has been set at Rs 1,700-1,785 per share.

As it is entirely an offer-for-sale, the NSE will not receive any proceeds from the IPO. All the proceeds from the offer, excluding offering expenses, will be received by selling shareholders.

The exchange has reserved shares worth Rs 70 crore for its employees, who will be offered those shares at a discount of Rs 170 per share to the final offering price.

Kotak Mahindra Capital Firm, JM Financial, Morgan Stanley India Firm, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, SBI Capital Markets, Anand Rathi Advisors, Avendus Capital, Axis Capital, DAM Capital Advisors, Equirus Capital, HDFC Bank, ICICI Securities, IDBI Capital Markets & Securities, IIFL Capital Services, Motilal Oswal Investment Advisors, Nuvama Wealth Management, Pantomath Capital Advisors and 360 ONE WAM are acting as the merchant bankers for managing the NSE IPO.

The IPO share allotment is likely to be finalised on September 22, while the shares of NSE are anticipated to be available for trading on the BSE from September 24. Should you apply?

The Religare Broking in an IPO note stated, "NSE’s IPO presents a balanced outlook, with financial performance in FY26 impacted by regulatory changes and moderation in trading activity, while operational metrics remained resilient, supported by increasing investor participation, fund mobilisation and market presence. At a P/E of 42.9x, the valuation reflects the firm’s established market position and future expansion potential, while leaving limited room for earnings disappointments. Regulatory developments, including SEBI measures on options trading, stay key factors influencing trading volumes and transaction-based income. While the long-term expansion opportunity in India’s capital markets stays favourable, the sustainability of earnings expansion will depend on trading activity, regulatory stability and continued market participation. Given the balance between structural expansion opportunities, regulatory uncertainties and valuation considerations, we assign a Neutral rating. "

"NSE faces significant risks from any slide in the volume and value of transactions, which could reduce transaction-based income and adversely affect expansion. Its high dependence on transaction charges, particularly from the options business, increases sensitivity to trading activity. Technology infrastructure is critical, making system failures, cybersecurity issues or difficulties in adopting new technologies potential risks. Dependence on third parties and intermediaries additionally creates operational and fraud risks. Additionally, regulatory changes affecting trading products, market structure or transaction activity could adversely impact volumes, topline, financial performance and future expansion prospects," the IPO note reads further.

Prasenjit Paul, Fund Manager at 129 Wealth & Head of Research at Paul Asset, stated, "NSE is a fundamentally firm, cash-generating business with a clear competitive advantage, but market participants should still focus on the price being paid for its earnings. At Rs 1,785, the valuation is around 43 times FY26 earnings, which looks justified, though not cheap. Future expansion can come from deeper capital-market participation, cash-market activity, new products, data, indices and GIFT City rather than further market-share upside alone. The key risk stays its dependence on derivatives, with options transaction fees contributing significantly to topline. Post-stock-exchange debut, market participants should track earnings expansion, cash-market volumes, options activity and recurring profitability rather than headline turnover numbers."

NSE is India's largest stock exchange in terms of total turnover across key asset classes, with a 93.05 percent market share in the cash market, 99.72 percent in equity futures, 68.48 percent in equity options, 100 percent in exchange-traded currency futures and 100 percent in exchange-traded currency options, based on total premium turnover, as of the three-month period ended June 2026.